At Year End Dodgy Ltd Had a Balance in Accounts

question 6

Multiple Choice

At year end Dodgy Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2000.It was decided to write off as irrecoverable the debt of Houdini Ltd totalling $3500.It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable.
- What was the journal entry needed to bring the Allowance for doubtful debts to the required level after writing off the debt of Houdini Ltd?

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Definitions:

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against infections and diseases.

Stressors

Factors or conditions that induce stress in an individual or system.

Carcinogens

Substances or agents that can cause cancer by altering cellular metabolism or damaging DNA directly in cells.

B Lymphocytes

A type of white blood cell of the lymphocyte subtype, which plays a significant role in the immune system by producing antibodies to fight infections.